DPA options subject to change based on market conditions Must confirm availability with Housing Authority.

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1 Tip: To find specific information for a product, Press Ctrl+F (or use Find from the Edit Menu) and then search for the information or topic you are looking for. If you don t find the topic the first time, try variations, different terms or less words. GSFA PLATINUM FOR CASES ASSIGNED ON OR AFTER 9/14/15 Must be referred to AFS for Origination (loan cannot be originated by branch) DPA options subject to change based on market conditions Must confirm availability with Housing Authority. 30 Year Fixed LTV CLTV Purpose Units Occupancy Credit Score Purchase 1-4 O/O On purchases, the CLTV is further limited to 100% (of the adjusted value) or the standard FHA LTV limit (96.50%) (depending on the type of financing) if the subordinate lien is NOT from an instrumentality of government or government agency that is providing down payment and/or closing cost assistance in the form of secondary financing. PRODUCT NAME GSFA Platinum 30 Year FHA Fixed (California) GSFA Platinum DPA 2nd ALLOWABLE Retail ORIGINATION CHANNELS Loans must be referred to the AFS department for origination PROGRAM Golden State Finance Authority (GSFA) (California) SPONSOR/SERVICER U.S. Bank GRANT FUNDS Effective for loans reserved prior to 3/1/2018: A loan for the DPA Second Lien is not created in FT360 as this is not a lien, it is a grant. There are no disclosures and loan documents as it is not a lien, but a grant from the Housing Authority. Borrowers qualifying under this program must utilize the down payment assistance associated with this program. The first trust deed is not allowed to be used without using the DPA. Grant Funds available from GSFA: Credit scores receive a non-repayable grant of up to 3.5% Credit scores of 660+ receive a non-repayable grant of up to 4% Proceeds may be used for down payment and/or closing costs; There must be no cash back to the borrower from the Grant Fund proceeds; GSFA Platinum FHA Product Profile 1 of 34 04/01/2019

2 DOWN PAYMENT/CLOSING COST ASSISTANCE GSFA s EIN is Lenders are required to reflect GSFA s EIN on HUD s FHA Loan Underwriting and Transmittal Summary in conjunction with secondary financing assistance, grants or gifts to the borrower when the borrower is receiving an FHA First Mortgage. Lenders upfront the grant at closing to be reimbursed by the Servicer, on behalf of GSFA, upon purchase of the Platinum First Mortgage. A copy of the grant letter will be generated during the Reservation Process Effective for loans reserved on or after 3/1/2018: Additional loan must be created in FT360 to accommodate 2nd lien and should be created at the same time the 1st lien is created for disclosure, document and funding purposes. Assistance consists of a 0.00% forgivable second mortgage of up to 3.00% or 4.00% of the total first mortgage loan amount that is forgiven after 3 years. There are no monthly payments Proceeds may be used for down payment and/or closing costs; There must be no cash back to the borrower from the Second Mortgage proceeds; Borrowers qualifying under this program must utilize the down payment assistance associated with this program. The first trust deed is not allowed to be used without using the DPA. Second Mortgage is forgiven after 3 years; The outstanding principal amount of the Second Mortgage is reduced by one-third (1/3rd) of the original principal amount on each one-year anniversary date. Upon sale or refinance prior to the end of the 3 years, the total loan forgiveness will be calculated pro rata on a monthly basis with x/36 of the original principal amount being deducted from the original principal amount, x being equal to the total number of whole months completed since the date hereof. No subordination allowed. Lender must conform to federal RESPA and Truth-in-lending laws in disclosing the terms of the Second Mortgage. Lender upfronts the DPA amount at closing to be reimbursed by the Servicer, on behalf of GSFA, upon purchase of the Platinum First Mortgage Loan GSFA s EIN is Lenders are required to reflect GSFA s EIN on HUD s FHA Loan Underwriting and Transmittal Summary in conjunction with secondary financing assistance, grants or gifts to the borrower when the borrower is receiving an FHA First Mortgage. PLATINUM SELECT GIFT GSFA Platinum borrowers who qualify for the Platinum Select feature, will be eligible for Down Payment Assistance (DPA) in the form of a non-repayable Gift instead of a Second Mortgage. Borrower must have one of the following occupations in California: Peace Officers, Sheriff, Border Patrol Agents, Correctional Officers and others serving in a Law Enforcement capacity; Firefighters, CalFire, paramedic, and Emergency Medical Technicians (EMTs), including administrative staff that supports firefighters; or Current members of the California State Teachers Retirement System (CalSTRS) or University of California Retirement Plan (UCRP), employees of a California accredited Private, Charter or Public School District or California State University, Junior College or Private College, including school administration and staff. Lenders are required to upload documented evidence of a borrower s eligible occupation within five (5) business days of submitting a loan reservation online. GSFA Platinum FHA Product Profile 2 of 34 04/01/2019

3 DOWN PAYMENT ASSISTANCE ON CLOSING DISCLOSURE All down payment assistance proceeds must be disclosed on the Closing Disclosure, Section L -Paid Already by or on Behalf of the Borrower at Closing. The down payment assistance proceeds must be labeled accurately. For example: "Second loan" is not appropriate if the assistance is a grant or gift. Multi-purpose labels such as Second/Grant/Gift will not be accepted, it must be specific to the transaction. If the borrower is receiving down payment assistance from multiple sources, all assistance sources must be itemized on the Closing Disclosure. Unless the CFPB comes out with guidance restricting it, it is acceptable to place assistance proceeds as "Other Credits" if necessary due to space limitations. Grant funds must be designated as GSFA Grant (as appropriate) TRAINING Click Program link below to pre-register for an training on program: US BANK "PLATINUM" Recorded Training Closed Loan, Delivery and Funding Training (For GSFA Platinum Serviced by US Bank) Click the links below to view US Bank recorded online trainings. LOAN DELIVERY AND PURCHASE Participating Lender should refer to Servicer Website for loan delivery and purchase guidelines as well as customer contact information at: a08c633-5c05-4d2c-9c6c-10f0f85c7c59 The Reservation Confirmation from GSFA must be submitted with the mortgage loan file. Servicer shall not purchase a Mortgage Loan without the Reservation Confirmation. A fee of up to 6% of the loan amount will be charged to lenders for closed loans with grants that are not delivered to the Servicer for purchase, or are not eligible for purchase by the Servicer. GSFA will reimburse the lender for the full grant amount with an invoice for this non-delivery fee. Lenders with excessive non-deliveries will be prohibited from participating in the GSFA Platinum Program. AGENCY LINKS For additional reference, see Administrators Guidelines at: In addition to any Product Profile requirements, you must always meet the published HUD guidelines and master servicer, U.S. Bank, lending criteria. If published HUD guidelines or U.S. Bank are more restrictive then what is allowed in the Product Profile, you must always defer to HUD Guidelines. For additional information regarding U.S. Bank requirements then click on U.S. Bank Lending Manuals All PRMG staff can access all end Agency guidelines though AllRegs Online at Instructions on how PRMG staff can access the AllRegs service is available in the Resource Center. Use the following link to access the HUD Housing Handbooks site, and from there, obtain access to the Handbook: ps/handbooks/hsgh Access the All Regs version of the Handbook at: MINIMUM LOAN No Minimum Loan Amount AMOUNT GSFA Platinum FHA Product Profile 3 of 34 04/01/2019

4 MAX. LOAN AMOUNT With cases assigned prior to 1/1/2019, max loan amount is lesser of $453,100 or the particular county s maximum HUD loan limit. HUD Loan Limits can be found here: With cases assigned on or after 1/1/2019, max loan amount is lesser of $484,350 or the particular county s maximum HUD loan limit. HUD Loan Limits can be found here: GEOGRAPHIC RESTRICTIONS GSFA California only Please refer to PRMG s Eligible States list, which can be found at this link: Verify eligibility, by ensuring the state appears in the following list: Additionally, must be PRMG eligible state (see eligible states list in Resource Center) MORTGAGE TYPES 203(b) Home Mortgage Insurance 234(c) Mortgage Insurance for Condominiums FEES AND POINTS Servicer Website at: provides additional guidelines 1 st First Mortgage: Origination Fee: 2.00% will be charged. Discount Points: 0.00% (This Program does not allow Discount Points to be charged to the Borrower) Standard PRMG Underwriting and Processing Fee to be charged In addition to the fees above, other customary third-party fees such as credit report fee, appraisal fee, insurance fee, or similar settlement or financing costs may be charged Funds to Lender from Servicer at Loan Purchase: 100% of the outstanding principal amount of the loan and grant 2 nd Fees charged on the Down Payment Assistance Second Loan cannot exceed 1% of the Second Loan amount (recording fees and transfer taxes are not included in the 1% maximum). DOCUMENTATION Full/Alt Doc Regardless of DU findings, all loans must have evidence that the most current year s 1040 tax returns have been validated for all borrowers with any type of qualifying income. If the results cannot be obtained due to an extension, a No Record Found message is acceptable, and a validated 4506-T on the previous year is required. Full 1040 tax transcripts are required to support income used to qualify. When transcripts indicate Due to limitations, the IRS is unable to process this request" one of the following must be documented in the file: 1. For salaried borrowers, when available, utilize The Work Number s Instant Access Database. This will show employment and income records provided by the employer s payroll system, OR, Lender may order W-2 or 1099 transcripts when the only income used to qualify is salaried/w-2 or 1099 reported income. 2. Request the most recent 1040s from the borrower(s), and proof of filing (cancelled check for tax payment, or bank statement showing deposit of refund). 3. Request that the borrower obtain the transcripts from the IRS. Tax transcripts must be provided for the number of years of income documentation required to be in the loan file, in accordance with the AUS findings and/or Agency requirements Tax transcripts must come to lender directly from the IRS or through a third party vendor ordered/obtained by lender GSFA Platinum FHA Product Profile 4 of 34 04/01/2019

5 When business tax returns are required by AUS, business income is used to qualify or business income is used to offset a loss on personal tax returns or is included in the loan file, a separate IRS Form 4506-T must be executed (but not processed and must allow enough time to be executed post-closing after delivery to investor) for each business for the required number of years of income documented, for each self-employed borrower on the loan transaction. Allowable signatures (per IRS): 1120/1120S: Borrower must sign name with title and only the following titles are acceptable: President, Vice President, CEO, CFO, Owner, 1065: Borrower must sign name with title and only the following titles are acceptable: General Partner, Limited Partner, Partner, Managing Member, Member Letter of explanation is required for borrowers who are self-employed or have non-w2 income/loss if there is a variance of 10% or more between the total income on the tax transcripts and the tax returns. Two years IRS 1040 Transcripts are required on all loans when the borrower is employed by a relative or closely held family business. Manual underwrite not allowed for reservations on or after 12/1/15, For manual underwrites (including manual downgrades), a business credit report for a selfemployed borrower who owns a corporation or s-corp is required (not required with AUS Approval). Debt does not need to be added to the transaction, but should be reviewed to ensure business is credit worthy, not heavily loaded with debt, etc. For non-self-employed borrowers: Verbal VOE is required to be completed no more than 10 days prior to the note date for wet funding states and escrow states. If the Verbal VOE is completed more than 10 days prior to the funding date, another Verbal VOE should be completed 10 days prior to funding date for escrow states. For self-employed borrowers: No more than 30 calendar days prior to note date, verify the existence of the borrower s business from a third party that may include a CPA letter (cannot be vague, must state length of time doing taxes and be signed by CPA), regulatory agency, or appropriate licensing bureau; OR verify a phone listing and address for the borrower s business through resources such as the telephone book, directory assistance, internet, or contact the appropriate licensing bureau. Verification may not be made verbally, and a certification by PRMG indicating the information was verified is not allowed. Documentation from the source used to verify the information must be obtained and in the file. Internet sites such as 411.com, Chamber of Commerce sites and Manta.com where they allow the business owner to add their own information are not acceptable. Also single source verifications, such as from superpages.com, yellowpages.com and searchbug.com are not allowed. If all other methods of obtaining third party verification have been exhausted, the borrower can provide letters from three clients indicating the type of service performed, length of time of business relationship, frequency of service, payment arrangements, etc. and support the income with current bank statements, deposits, etc. The underwriter must thoroughly investigate that the business, income and proof of business is legitimate. VOR/VOM required as indicated by the AU approval. With AUS Approval documentation must comply with AUS and TOTAL Scorecard section of the handbook and for manual underwrites (including downgrades) documentation must comply with requirements of the manual underwrite section of the which can vary significantly from AUS Findings (Manual underwrite not allowed for reservations on or after 12/1/15.) Amended tax returns cannot be used to qualify if they are amended after the application, initial credit report date or purchase contract date unless the changes made are non-material to the amount of income claimed, and qualification for the mortgage loan. Due diligence must be exercised with close examination of the GSFA Platinum FHA Product Profile 5 of 34 04/01/2019

6 original, and amended returns, to determine if the use of the amended return is warranted and the following documentation should be reviewed when income from the amended return is required: A letter of explanation regarding the reason for the re-filing; evidence of filing (must be validated with a record of account (4506T results); copy of the original 1040; any extensions filed, and evidence of payment of the taxes due (or evidence borrower is on a payment plan in lieu of full payment as long as the borrower qualifies with the payment in the ratios), and the ability to pay, if the check has not yet cancelled. Profit and loss statement and balance sheet required if more than a calendar quarter has elapsed since date of most recent calendar or fiscal-year end tax return was filed by the borrower. (A balance sheet is not required for selfemployed borrowers filing Schedule C income.) Additionally, if income used to qualify the borrower exceeds the two year average of tax returns, an audited profit and loss statement or signed quarterly tax returns obtained from IRS are required. Income documentation per AUS findings Preliminary Title policy must be no more than 90 days when the note is signed Provide a written analysis of the income used to qualify the borrower on the Transmittal Summary or like document(s) in the file. An Income Analysis must be completed for self-employed borrowers. When paying off any non-transaction related item (i.e., debts, third party payouts, etc.) that has a balance of $5,000 or more, paid for by either borrower or seller, to ensure that the total payoffs are accurate, copies of the actual invoices (statements), an updated (current) credit report/refresh or credit supplement reflecting the current balance with a signed amendment (or similar) authorizing disbursement for these account(s) are required. You cannot use the amount listed on the credit report to document the payoff amount. All documentation used in qualifying the borrower must be legible and if not in English, will require a full written translation of the entire documentation into English. The Borrower's liabilities must be reflected on the mortgage application and considered when qualifying the loan. The mortgage application, credit report, borrower's paystubs (if provided), and all other file documentation must be reviewed for borrower liabilities. Other file documentation can include, but is not limited to, bank statements, tax returns, divorce decrees etc. When an undisclosed reoccurring debt is identified in the loan file, it must be included in the qualification of the loan. In instances where it negatively affects the loan qualification, a letter of explanation may be required. Must authenticate documents obtained from an Internet website and examine portions of printouts downloaded from the Internet including the Uniform Resource Locator (URL) address, as well as the date and time the documents were printed. The lender must visit the URL or the main website listed in the URL if the page is password protected to verify the website exists and print out evidence documenting the lender s visit to the URL and website. DOCUMENT EXPIRATIONS Preliminary Title policy must be no more than 90 days when the note is signed Credit documentation must not be more than 120 days old from the disbursement date Appraisals are valid for 120 days and must be dated within 120 days of the disbursement date AUTOMATED The last AUS finding, which must match the terms of the loan, must be in the loan UNDERWRITING file. For all loans, the first submission to the AUS must occur prior to the note date (it cannot be the same as the note date.) AUS DATA ENTRY See Housing Authority Products with Second Liens in FT360 in the Resource Center, GSFA Platinum FHA Product Profile 6 of 34 04/01/2019

7 REQUIREMENTS OF DPA LIEN DESKTOP UNDERWRITER (DU) which can be located at the following link: AuthorityProductswithDPALiensinFT360.pdf In the Secondary Financing of the HUD-92900LT FHA Loan Transmittal screen Enter the Secondary Financing Source/EIN Select the Correct Check box (Gov t A Government Entity is the source of the secondary financing, NP A Non-Profit Agency is the source of the secondary financing, Family A Family member is the source of the secondary financing, Other There is another source of the secondary financing (completed checkbox which will enable if selected) Enter the Amount of the Secondary Financing In MORNETPlus Community Lending Section of the Streamlined 1003: Do not select Community Lending on the Mornet Community Lending screen If HFA Second Mortgage being used, Community Second needs to be checked If HFA grant is being used neither Community Lending nor Community Second should be checked All loans, manual underwrite or not, must be run through FHA s TOTAL SCORECARD decisioning engine via DU. A copy of the findings must be included in the file. (Manual underwrite not allowed for reservations on or after 12/1/15.) Must receive an Approve/Eligible (unless manually underwritten). Manual underwrite requires second signature by Corporate Underwriting or Operations Manager for Level 3 or lower underwriters. Level 4 underwrite allowed without a second signature. (Manual underwrite not allowed for reservations on or after 12/1/15.) All conditions outlined in the Findings Report must be satisfied. If TOTAL Scorecard issues an Approve/Eligible and ANY the following applies or the DU findings indicate you need to downgrade, then the loan must be downgraded to a Refer and manually underwritten, meeting all manual underwriting requirements (Manual underwrite not allowed for reservations on or after 12/1/15): the mortgage file contains information or documentation that cannot be entered into or evaluated by TOTAL Mortgage Scorecard; additional information, not considered in the AUS recommendation affects the overall insurability of the Mortgage; the Borrower has $1,000 or more collectively in Disputed Derogatory Credit Accounts (defined as disputed charge off accounts, disputed collection accounts, and disputed accounts with late payments in the last 24 months; exclusions from cumulative balance include: disputed medical accounts; and disputed derogatory credit resulting from identity theft, credit card theft or unauthorized use. To exclude these balances, the Mortgagee must include a copy of the police report or other documentation from the creditor to support the status of the accounts.) the date of the Borrower s bankruptcy discharge as reflected on bankruptcy documents is within two years from the date of case number assignment (see credit section for seasoning requirements) - Per HUD they do not require seasoning or a downgrade for a dismissed bankruptcy. the case number assignment date is within three years of the date of the transfer of title through a Pre-Foreclosure Sale (Short Sale) (see credit section for seasoning requirements); the case number assignment date is within three years of the date of the transfer of title through a foreclosure sale (see credit section for seasoning requirements); the case number assignment date is within three years of the date of the GSFA Platinum FHA Product Profile 7 of 34 04/01/2019

8 transfer of title through a Deed-in-Lieu (DIL) of foreclosure (see credit section for seasoning requirements); for purchase and non-cash out refinances transactions, if any mortgage trade line reported on the credit report used to score the application, including mortgage line-of-credit payments, during the most recent 12 months reflects: 3 or more late payments of greater than 30 days; OR 1 or more late payments of 60 days plus one or more 30-day late payments; OR 1 payment greater than 90 days late For a cash out transaction if a mortgage trade line reported on the credit report used to score the application reflects a current delinquency or any delinquency within 12 months of case assignment date or a current delinquency the Borrower has undisclosed mortgage debt that reflects: (1) a current delinquency; (2) any delinquency within 12 months of the case number assignment date; or (3) more than two 30 Day late payments within 24 months of the case number assignment date business income shows a greater than 20 percent decline over the analysis period. LOAN PRODUCT ADVISOR Not allowed (LPA) Formerly known as Loan Prospector (LP) MANUAL UNDERWRITING Manual underwrite not allowed Allowed with a TOTAL Scorecard Refer decision or manual downgrade Requires second signature by Corporate Underwriting or Operations Manager for Level 3 or lower underwriters. Level 4 underwrite allowed without a second signature Documentation must comply with requirements per which can vary significantly from AUS Findings Loans manually underwritten will not allow paying off revolving debt to qualify Must follow more conservative of the Product Profiles or Manual Underwrite section of Handbook (Manual underwrite not allowed for reservations on or after 12/1/15.) CAIVRS/DELINQUENT FEDERAL DEBT Credit Alert Interactive Voice Response System (CAIVRS) needs to be run Borrower may not denied solely on the basis of CAIVRS information that has not been verified. Lender must contact the creditor agency using the contact phone number and debt reference number reflected in the Borrower s CAIVRS report If a Borrower is currently delinquent on an FHA-insured Mortgage, they are ineligible for a new FHA-insured Mortgage unless the delinquency is resolved. Borrowers with delinquent Federal Tax Debt are ineligible. See Qualifying Section for borrowers who have past due federal tax debt and are in a payment plan. Mortgagees must check public records and credit information to verify that the Borrower is not presently delinquent on any Federal Debt and does not have a tax lien placed against their Property for a debt owed to the federal government To verify a delinquent student loan, or loan paid by a government claim, is not a defaulted federal loan (when not appearing in CAIVRS or clearly listed on the credit report as federal debt or even when reporting as a charge-off on credit report), contact or DCS_Help@ed.gov For delinquent federal non-tax debt, including deficiency judgments and other debt associated with past FHA-insured mortgages, must include documentation from the creditor agency to support the verification and resolution of the debt (the Borrower must resolve their federal non-tax debt in accordance with the Debt Collection Improvement Act). For debt reported through CAIVRS, the Mortgagee may obtain evidence of resolution by obtaining a clear CAIVRS report. If CAIVRS indicates the borrower is presently delinquent or has had a foreclosure GSFA Platinum FHA Product Profile 8 of 34 04/01/2019

9 within the previous three years, the borrower must have CAIVRS updated/cleared and the foreclosure seasoning is based on transfer deed date of the foreclosed property. LDP/GSA REQUIREMENT All parties involved with and who handle the loan file (see instructions in the Resource Center for additional information) must be checked against HUD s Limited Denial of Participation (LDP) list at and the General Services Administration s (GSA) Excluded Party List at Any entity noted on either of the LDP and GSA lists must be removed from the transaction or will cause the loan to be ineligible. The parties to verify include, but are not limited to, Buyers (including AKAs on the credit report), Sellers, Loan Officer, Buyers Agent, Sellers Agent, Escrow Officer, Title Officer, Appraiser, Processor, and Underwriter. MORTGAGE CREDIT REJECT/SANCTION PROPERTY TYPES ELIGIBLE Any mortgage credit reject or mortgage credit sanction will require a second signature from an Operations Manager. The underwriter must justify on their LT why they want to overturn another lender s decline and document the file accordingly New, or Existing 1-4 units, Owner Occupied only HUD Approved Condos, Attached, or Detached PUDs Attached and Detached INELIGIBLE Condos without HUD Approvals Manufactured Homes Mobile homes Condotels Cooperative housing (co-op) Mixed-Use Leased Land/leaseholds Land Trusts Log Homes Properties that have a Property Assessed Clean Energy (PACE) loan are not eligible (such as the Home Energy Renovation Opportunity (HERO) Program) CONDOS Must be HUD Approved: Underwriter must certify that there have been no changes to the project since HUD approval that would cause the project to no longer be HUD approved Detached condos, meeting HUD s definition of a site condo, do not have to have project approval. 3-4 UNIT PROPERTIES 3 month PITIA in reserves required The property must be self-sufficient (i.e. the maximum mortgage is limited so that the ratio of the monthly mortgage payment, divided by the monthly net rental income, does not exceed 100%) MAXIMUM ACREAGE Maximum 40 acres PROPERTIES WITH UN- Allowed. PERMITTED ADDITIONS Must meet HUD Guidelines. PROPERTIES WITH Guest houses, granny units and in-law quarters are eligible under the following ACCESSORY UNIT conditions: Must be zoned for Single Family occupancy Cannot be zoned 2-4 units Must meet investor guidelines and city/county zoning ordinances May not be income-producing and must be for personal use only LEGAL RESTRICTIONS ON There may be no legal restrictions on conveyance (transfer of title) in accordance GSFA Platinum FHA Product Profile 9 of 34 04/01/2019

10 CONVEYANCE (FREE ASSUMABILITY) with 24 CFR , which would include items like Private Transfer Fees and Community Enhancement Fees unless specifically allowed per 24 CFR (see AllRegs for additional information on 24 CFR ) Underwriter must review and confirm that if are legal restrictions on conveyance, they are allowed in accordance with 24 CFR and are not further restricted by the product profile (for instance allowable deed restriction types). NEW CONSTRUCTION If it is a construction loan that is being paid off, where it is a property the borrower already owns, the LTVs are based on the occupancy requirements set by HUD in the Maximum Loan to Value Ratio section of the The sale of an occupied property that has been completed less than one year from the issuance of the CO or equivalent is considered as an existing property For new construction, if the appraisal on the property is subject to completion per plans and specs then the final inspection must be done by an FHA Fee Roster Inspector. If the appraisal it is subject to repairs, it can be the original appraiser. Note, if a property is more than 90% complete at time of appraisal it should be done subject to repairs and not done subject to plans and specs Allowed, with the following requirements: The permanent loan had interim construction financing that was not provided by FHA or the loan proceeds were used to pay off a builder The loan must meet all FHA policies and documentation requirements for new construction loans Borrowers must be qualified using the estimated real estate taxes based upon the completed property improvements, not the unimproved lot taxes FHA Construction Permanent Mortgage Program is not available (where the FHA loan funds are taken as draws and used to finance the construction of the property) If any part of the property (the dwelling and related structures/equipment essential to the property value and subject to flood damage) is located within a Special Flood Hazard Area (SFHA), the property is not eligible unless one of the following is obtained: FEMA Final Letter of Map Amendment (LOMA) or Final Letter of Map Revision (LOMR) that removed the property from the SFHA; or Flood Elevation Certificate (form FEMA 81-31) from a licensed engineer or surveyor documenting that the lowest floor (including the basement) of the residential building and related improvements is built at or above the 100 year flood elevation in compliance with NFIP criteria. CONSTRUCTION TO Not allowed PERMANENT FINANCING GSFA Platinum FHA Product Profile 10 of 34 04/01/2019

11 OCCUPANCY Primary Residence (O/O) ELIGIBLE BORROWERS US Citizen, permanent resident alien or qualified alien Both first time and non-first-time homebuyers are eligible All borrowers must occupy the property as their primary residence within 60 days of closing (for Service Members, a family member will satisfy the occupancy requirement). ITIN (Individual Tax Payer Identification Numbers) are not allowed; all borrower must have valid and verifiable social security numbers Borrowers with diplomatic immunity are not allowed Borrower must take title in individual names, no trusts, etc. allowed 115% Area Median Income (AMI) Refer to GSFA Meet all required FHA underwriting criteria Non-Purchasing Spouse - A non-purchasing spouse must sign the mortgage/deed of trust (and/or any riders or disclosures) or a Quit Claim Deed when borrower is vesting as "sole and separate". Signing the mortgage/deed of trust and other related documents does not make the non-purchasing spouse a co-borrower. US CITIZENS Allowed RESIDENT ALIENS Allowed Permanent resident aliens are eligible and must provide evidence of a valid Social Security number. Non-permanent resident alien may be eligible provided: the Property will be the Borrower s Principal Residence; the Borrower has a valid SSN, except for those employed by the World Bank, a foreign embassy, or equivalent employer identified by HUD; the Borrower is eligible to work in the United States, as evidenced by the Employment Authorization Document issued by the USCIS; and the Borrower satisfies the same requirements, terms and conditions as those for U.S. citizens. The Employment Authorization Document is required to substantiate work status. If the Employment Authorization Document will expire within one year and a prior history of residency status renewals exists, the Mortgagee may assume that continuation will be granted. If there are no prior renewals, the Mortgagee must determine the likelihood of renewal based on information from the USCIS. A Borrower residing in the U.S. by virtue of refugee or asylee status granted by the USCIS is automatically eligible to work in this country. The Employment Authorization Document is not required, but documentation substantiating the refugee or asylee status must be obtained. Lenders are required to confirm borrower compliance per the Citizenship, Alienage and Immigration Status list. Lenders should only document compliance in their inhouse loan file. Borrowers under Deferred Action, the Dreamer s Act or DACA (EAD Code C33, C14, etc.) are not eligible. Although, these individuals may have been granted permission to remain in the U.S. for a period of time, DACA/Deferred Action does not grant a legal status. PRMG requires all borrowers to document proof of legal residency in the U.S. Additionally, they must follow the applicable guidelines for income (typically 2 year history and likely to continue for 3 years as applicable.) A borrower with DACA/Deferred Action status would not be able to meet the borrower eligibility documentation requirements (i.e., green card or meet applicable agency standard guidelines for income) and therefore is not be eligible. NON-OCCUPYING CO- Not allowed BORROWERS GSFA Platinum FHA Product Profile 11 of 34 04/01/2019

12 NON-OCCUPYING CO- SIGNERS Allowed per FHA guidelines Must not occupy the property Must not be on title or have a vested interest in the property Must sign all loan documents except the security instrument(s) Will have their income, assets, liabilities and credit histories considered by underwriting POWER OF ATTORNEY Power of Attorney must be reviewed and approved by fulfillment center Operation Manager or PRMG's Compliance Group Allowed with the following requirements: Power of Attorney (POA) must be limited or specific to the transaction All transaction types allowed Power of Attorney may not be used to sign loan documents if no other borrower executed such documents unless, the Attorney in Fact is a relative or Attorney at Law. POA can be used only for closing documents The attorney-in-fact may not be the seller, appraiser, broker, etc. or have any other direct or indirect financial interest in the transaction A statement that the POA is in full force and effect on the closing date, survives subsequent disability (durable), and has to be revoked in writing, or gives a specific expiration date which survives the closing date A statement of the borrower s name exactly as it will appear on all closing documents Notarized signature of borrower (if executed outside the U.S., it must be notarized at a U.S. Embassy or a military installation) Recorder s stamp, if previously recorded The attorney-in-fact must execute all closing documents at settlement Title policy must not contain any exceptions based on use of POA POA must be recorded along with or immediately prior to the closing documents If a lender determines a Power of Attorney is required by applicable law (so cannot be restricted by investor requirements), lender must include a written statement explaining use of the Power of Attorney and may also be required to provide supporting documentation. A written statement that explains the circumstances of the use of the POA must be included in the loan file. Must met all Agency requirements GSFA Platinum FHA Product Profile 12 of 34 04/01/2019

13 LEXIS-NEXIS SEARCH REQUIREMENT For any of the following transaction types an request (which includes a screenshot or snip of the loan in the FastTrac pipeline) must be sent to QC to have a LexisNexis search run on involved parties to the transactions to ensure there is no relationship between the buyer and seller. (Not all items listed may be applicable to this product, review product profiles for what is allowed): Short Sale Purchase Property Flips <= 180 days Contractors on a 203K loan For Sale by Owner (FSBO) required for all except: If the borrower and seller are related or are landlord and tenant, and the relationship is disclosed and is acceptable per PRMG guidelines An investor, such as HUD, FNMA, FHLMC, etc. REO lender who acquired the subject property by Trustee Sale as the Beneficiary QC AUDIT REQUIRED A QC audit is required if the loan has any of the following high risk characteristics (not all items listed may be applicable to this product, review product profiles for what is allowed): 5-10 financed properties for second home and investment transactions. 3-4 Units 2-4 Unit properties in New Jersey Renovation (203K/Homestyle) loans (Lexis Nexis is required on all contractors as well) VOE only used (when allowed by AUS) and not supported by paystub/w2 for Wholesale and Correspondent channels only (not required for retail channel) If the borrower is employed by a party to the transaction When the borrower is also a Real Estate Agent for the loan transaction Retail loans referred to the AFS department any time the referring Loan Officer or the AFS Loan Officer are in New or Watch status When the Real Estate Agent is also the Loan Officer on the transaction (not allowed on retail). NOTE: The above list applies to credit qualifying loans only. QC REVALIDATION REQUIRED INCOME REQUIREMENTS/LIMITS A QC validation is required if the loan has any of the following characteristics (not all items listed may be applicable to this product, review product profiles for what is allowed): A revalidation of the VOE (in addition to the audit) is required by the QC Department if the following is used: VOE only used (when allowed by AUS) and not supported by paystub/w2 and Wholesale and Correspondent channels only (not required for retail channel) A revalidation of the VOD is required by the QC Department for the if the following is used: VOD only used (when allowed by AUS) and not supported by bank statements and Wholesale and Correspondent channels only (not required for retail channel) Note: A Borrower Authorization in name of PRMG may be required to obtain VOD or VOE revalidation if requested by the verifying institution. Underwriter has the discretion when evaluating the loan file to utilize a more conservative approach to income/expenses for qualification purposes based on the circumstances of the loan. All income sources used to qualify borrowers must be legal at the local, state, and federal level. Any income derived from an activity or source that violates Federal, state, or local laws cannot be considered for loan qualification for both self- GSFA Platinum FHA Product Profile 13 of 34 04/01/2019

14 MAXIMUM PROGRAM COMPLIANCE INCOME LIMITS SEASONING REQUIREMENTS RECENTLY DELISTED PROPERTIES TITLE SEASONING/LOAN SEASONING ANTI-FLIPPING POLICY employed borrowers and wage earners working for a company. Income calculations must be included in the file If a borrower is currently on temporary disability (including maternal/parental leave), the borrower must provide a letter of intent to return to work and the employer must provide a letter or other communication of the borrower's right to return to work and a description of the employment terms (same as prior to leave). The temporary disability benefits must be used for loan qualification and must not terminate prior to the borrower returning to work, unless the borrower(s) has liquid reserves sufficient to offset reduced income, covering the gap between the benefits expiration and the return to work dates. See for specific requirements For borrowers with gaps in employment of six months or more (an extended absence), the borrower s current income can be used for qualifying if it can verify and document that: (1) the borrower has been employed in the current job for at least six months at the time of case number assignment; and (2) a two year work history prior to the absence from employment using standard or alternative employment verification. When required, transcripts must be provided for the number of years of income documentation required to be in the loan file, in accordance with the AUS findings and/or HUD requirements. Tax transcripts are required to support the income used to qualify the borrower. The purpose of the 4506-T is to verify the income reported is accurate Expenses (unreimbursed business expenses) do not need to be considered in income calculations Until FHA officially publishes a change to their policy on 2106 expenses, the 2106 expenses need to be considered in income calculation for HFA loans where US Bank is the master servicer. For borrowers with rental income, if a lease agreement is required then the lease agreement must executed by the landlord and the tenant and all pages of the lease agreement must be included. Housing Assistance Payments (HAPs), which are often known as Section 8 Homeowner Vouchers, where a portion of the mortgage payment is paid directly to the borrower/lender as a subsidy for the mortgage payment on the subject property is not allowed. Qualifying income is the income used by the lender to determine that the borrowers have the ability to meet their monthly obligation. Qualifying income may differ from the income used by GSFA for program compliance purposes. Maximum Median income allowed is 115%. To check the median income for the state where property is located 115% Area Median Income (AMI), refer to below links to find the median income (already calculated) for the county/state where property is located. Based off qualifying credit income (not household) from the FHA Loan Underwriting and Transmittal Summary HUD #92900-LT GSFA - N/A N/A For purchases - The property Seller must have taken title to the subject property more than 90 days prior to the contract date on the sale of the property to the applicant. GSFA Platinum FHA Product Profile 14 of 34 04/01/2019

15 Property flipping is a practice whereby a recently acquired property is resold, often for a considerable profit. If there is a partial continuity of ownership, a quit claim deed transaction is not a sale and is not subject to the rules prohibiting property flipping. The use of a quit claim will not be deemed a flip as long as at least one of the original owners retains an ownership interest in the property after the quitclaim is recorded. The seller s date of acquisition is defined as the settlement date on the seller s purchase of that property. Must obtain a 12 month chain of title documenting compliance with time restrictions on resales. If the seller has taken title within the past 91 to 180 days and the new sales price exceeds the previous sales price by 100% or more, a second FHA appraisal (by another appraiser) is required. The borrower is not allowed to pay for the Second appraisal. The Anti-Flipping requirements do not apply to the exceptions below: properties acquired by an employer or relocation agency in connection with the relocation of an employee; resales by HUD under its REO program; sales by other U.S. government agencies of Single Family Properties pursuant to programs operated by these agencies; sales of Properties by nonprofits approved to purchase HUD owned Single Family Properties at a discount with resale restrictions; sales of Properties that are acquired by the seller by inheritance; sales of Properties by state and federally-chartered financial institutions and Government-Sponsored Enterprises (GSE); sales of Properties by local and state government agencies; and sales of Properties within Presidentially-Declared Major Disaster Area, only upon issuance of a notice of an exception from HUD. The restrictions listed above and those in 24 CFR a do not apply to a builder selling a newly built house or building a house for a Borrower planning to use FHAinsured financing. The re-execution of the sales agreement in order to circumvent the 90-day flipping rule is not be permitted Evidence of required seasoning must be documented in the file. VALUE FOR LTV/CLTV See below to determine Adjusted Value CALCULATION PURCHASE Use lesser of purchase price less any inducements to purchase; or the Property Value (appraised value) RATE/TERM REFINANCE N/A CASH OUT N/A PURCHASE If there is evidence that borrower, a member of the borrower s family or party who has a clearly defined interest in the borrower (i.e., close family friend) previously owned a home being purchased that was a distressed sale (i.e., short sale) or foreclosure by the borrower or borrower s family member, the borrower may not purchase the property, regardless of the length of time since the distressed sale/foreclosure or the number of owners between the distressed sale/foreclosure and current owner. All purchasers listed on the contract of sale must be borrowers, however family members (as defined by HUD) may be on the contract and not be a borrower. Purchase contract assignment (assignment of the sales contract) not allowed. Purchase Transaction Seller Rent Backs of the subject property are limited to 45 days, GSFA Platinum FHA Product Profile 15 of 34 04/01/2019

16 must be reflected on the sales contract and Closing Disclosure, and are not counted towards borrowers minimum investment requirements. For condos, not allowed between borrower and developer. The Amendatory Clause is required, except where indicated below, on all purchase transactions when the appraised value is not available at the time of purchase contract execution. The document must be signed by all buyers and sellers involved with the loan transaction. It must be complete, including the sales price, printed seller name and date of agreement. A sample of the form is available in the Resource Center. This document, completely executed by all buyers and sellers involved with the loan transaction, should be included with the file for loan setup for all channels and should be obtained and executed prior to funding. Note, the amendatory clause is not required on the following transactions: HUD REO sales, FHA s 203(k) loan program or sales in which the seller is Fannie Mae, Freddie Mac, the Department of Veterans Affairs (VA), Rural Housing Services, other federal, state, and local government agencies, a lender disposing of REO assets, or a seller at a foreclosure sale. RATE/TERM REFINANCE N/A CASH OUT REFINANCE N/A REPAIR ESCROW/ESCROW Not Allowed HOLDBACKS QUALIFYING Qualify at note rate Installment debt can be paid off to qualify. Installment (closed end) debt does not have to be included if they will be paid off within 10 months and the cumulative payments of all such debts are less than or equal to 5 percent of the Borrower s gross monthly income. The borrower may not pay down the balance in order to meet the 10-month requirement. Accounts for which the borrower is an authorized user must be included in a borrower s DTI ratio unless documentation shows that the primary account holder has made all required payments on the account for the previous 12 months. If less than three payments have been required on the account in the previous 12 months, the payment amount must be included in the borrower s DTI. All deferred obligations (excluding student loans), regardless of when they will begin, must be included in the qualifying ratios. The lender must obtain evidence of: the deferral; the outstanding balance; the terms of liability; and the anticipated monthly payment. If the actual monthly payment is not available for installment debt, the lender must utilize the terms of the debt or 5 percent of the outstanding balance to establish the monthly payment. For cases assigned prior to 6/30/16, for all deferred student loans, if the actual monthly payment is zero or is not available, the lender must utilize 2 percent of the outstanding balance to establish the monthly payment. For cases assigned prior to 6/30/16, for student loans currently in a standard repayment plan, the required monthly payment is to be used for qualification purposes. For student loans currently in an income based repayment plan (there are various income based student loan repayment plans, some include increasing repayment amounts), utilize the payment noted on the income based repayment agreement. The current payment can be used even if a payment increase is reflected on an agreement. If a monthly payment is not reflected on the credit report then documentation as evidenced by a monthly payment statement, a letter from creditor or a repayment schedule, is required to verify monthly payment. For cases assigned on or after 6/30/16, student loans must be included in the borrower s liabilities, regardless of the payment type or status of payments (deferred GSFA Platinum FHA Product Profile 16 of 34 04/01/2019